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    venture's Avatar
    venture Posts: 55, Reputation: 1
    Junior Member
     
    #1

    Apr 12, 2013, 08:02 PM
    Proposal
    Hey Stringer,

    Thus far I've been taking your advice and it's been working quite well. Maybe you can help me out with this one. I'm creating a proposal for the common areas of an apt bldng complex and I was just wondering what the profit margin is on this type of job. Thanks.
    Stringer's Avatar
    Stringer Posts: 3,733, Reputation: 770
    Business Expert
     
    #2

    Apr 12, 2013, 08:30 PM
    Hi Venture,

    Glad that things are going well, proud of you.

    Remember to consider everything when pricing any job even who is also bidding and all your costs including travel to the site/s.

    As always... some questions;

    Do you have specs?

    What type of flooring and are you responsible for carpet cleaning and/or stripping and refinishing them (extra charge?).

    Windows?

    Besides corridors, what other areas are involved? Laundry rooms? Lunch rooms? Conference rooms? etc.

    How many days per week?

    One building or more?

    How many floors?

    Please get back to me and we can proceed... as you know a lot depends on the particulars and nuances of each job.

    Stringer
    venture's Avatar
    venture Posts: 55, Reputation: 1
    Junior Member
     
    #3

    Apr 12, 2013, 08:53 PM
    Do you have specs?. I do. 40 common area stair cases 5 half flights and 5 landings to be vac'd and dusted 1x week. 40 mini laundry rooms vac'd /dusted

    What type of flooring and are you responsible for carpet cleaning and/or stripping and refinishing them (extra charge?).. . Carpet just vacuum for this proposal

    Windows?. only entrance door

    Besides corridors, what other areas are involved? Laundry rooms? Lunch rooms? Conference rooms? etc... Laundry

    How many days per week?. 1x /week

    One building or more?. 40, some are attached but need to walk outdoors to get to each one.

    How many floors?. 2 with very small laudry at bottom of half flight

    Thanks
    Stringer's Avatar
    Stringer Posts: 3,733, Reputation: 770
    Business Expert
     
    #4

    Apr 12, 2013, 08:57 PM
    Well... thanks that was a quick response.

    Ok, so it seems that you have just light cleaning in all 40 buildings right? And should they want carpet cleaning or hard floor work that would be extra...

    Remember Venture that in the end pricing is your decision.

    Have you arrived at a per square foot rate so far for this type of cleaning? If so, what is it and what is the profit in that figure?

    Stringer
    venture's Avatar
    venture Posts: 55, Reputation: 1
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    #5

    Apr 12, 2013, 09:19 PM
    Yep, I'm online now working on my taxes:)
    I guesstimated a 20% profit... is that too much for an apt bldg?

    Thanks
    Stringer's Avatar
    Stringer Posts: 3,733, Reputation: 770
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    #6

    Apr 12, 2013, 09:32 PM
    Well that depends Venture on what your total coast are that you added the 20% to.

    Is this a property management company? If so, they are usually down and dirty and have a ton of companies bidding. That is why I asked that you answer my questions in post # 4 as this is the easiest way to a solution.

    Stringer
    venture's Avatar
    venture Posts: 55, Reputation: 1
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    #7

    Apr 12, 2013, 09:49 PM
    I came to a rate of .04 sq ft with a 20ish % profit.
    Stringer's Avatar
    Stringer Posts: 3,733, Reputation: 770
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    #8

    Apr 12, 2013, 10:04 PM
    I think that you are extremely low.

    My SUGGESTION is somewhere between $0.9 to $0.13 / sq ft in a very competitive bid process.

    Now remember Venture that I am in the Chicago market and even though we have 'scabs' who low ball everything my price may be higher than your market, but in my opinion not $0.04. You are almost paying them to do the job my friend.

    Good luck, and good luck with the taxes, remember to include them in all your bidding.

    Stringer
    venture's Avatar
    venture Posts: 55, Reputation: 1
    Junior Member
     
    #9

    Apr 12, 2013, 10:16 PM
    I think my market is up there with yours... I don't mean to be a 'scab'... I guess I just don't have any idea when it comes to this type of job... it's much bigger than what I now have. Ok, I definitely have to recalc my numbers. Thanks so much.
    Stringer's Avatar
    Stringer Posts: 3,733, Reputation: 770
    Business Expert
     
    #10

    Apr 12, 2013, 10:32 PM
    Venture, you know me (a bit) and you should know that I never meant to say that you are a scab, you must be accurate and competitive in your bidding, it all starts there.

    Like any business it is vital that you make money or it is not worth it. So, bidding is successful when you are competitive, make money and always cover all your costs.

    Know your competitors, know your market, know your service and be successful.

    That was the point that I was reaching for here. Many of those when starting learn quickly that they have to approach it this way or go out of business.

    You are a smart person, be attentive to the prospect, try to make headway with them and as in our case we get bids even when we were not the low bid.

    Again good luck,

    Stringer
    venture's Avatar
    venture Posts: 55, Reputation: 1
    Junior Member
     
    #11

    Apr 12, 2013, 10:48 PM
    OK, I will be more competitive... I promise not to be 'scab' like... so, I'll need to go back and rethink it out. Thanks so much Stringer. You've been a great help.
    Stringer's Avatar
    Stringer Posts: 3,733, Reputation: 770
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    #12

    Apr 12, 2013, 10:58 PM
    Good luck.

    Stringer
    venture's Avatar
    venture Posts: 55, Reputation: 1
    Junior Member
     
    #13

    Apr 14, 2013, 07:20 AM
    Hi Stringer
    OK, after redoing my scabbish numbers:) and adjusting my spreadsheets, the .09 per sq foot ends up +/- $200 difference verses $31/ man hrs. for the job. Do my numbers seem somewhat accurate?. Thanks so much.
    Stringer's Avatar
    Stringer Posts: 3,733, Reputation: 770
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    #14

    Apr 14, 2013, 09:06 PM
    I didn't call you that Venture.

    Go for it.

    Stringer
    venture's Avatar
    venture Posts: 55, Reputation: 1
    Junior Member
     
    #15

    Apr 14, 2013, 09:16 PM
    I know you didn't call me that... Although, I'm thinking of changing my user name to that... only kidding!
    So what does, "Go for it!" mean exactly?. is that your answer to my question... I'm not good at reading between the lines.
    I just finished my proposal packet(digital version) they want it emailed.. wish you could review it.
    Stringer's Avatar
    Stringer Posts: 3,733, Reputation: 770
    Business Expert
     
    #16

    Apr 14, 2013, 10:17 PM
    In my area $0.09 is competitive Venture.

    Stringer
    venture's Avatar
    venture Posts: 55, Reputation: 1
    Junior Member
     
    #17

    Apr 23, 2013, 07:33 AM
    Hi Stringer,

    What's the best way to advertise cleaning jobs?
    Stringer's Avatar
    Stringer Posts: 3,733, Reputation: 770
    Business Expert
     
    #18

    Apr 23, 2013, 09:00 AM
    Please explain a little more Venture. Are you asking about advertising your company in general or something specific?

    Stringer
    venture's Avatar
    venture Posts: 55, Reputation: 1
    Junior Member
     
    #19

    Apr 23, 2013, 11:01 AM
    Sorry, it's for hiring employees.
    Thanks.
    Stringer's Avatar
    Stringer Posts: 3,733, Reputation: 770
    Business Expert
     
    #20

    Apr 23, 2013, 06:12 PM
    Word of mouth from your own employees and people them recommend. Number one.

    Posters at supermarkets, stores.

    Ads in local newspapers, but we never had much luck in finding good people here.

    Stringer

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